The recent finding that advanced email personalization can generate an extra $20 back for every $1 invested in it has captured plenty of attention in the email industry. What’s even more remarkable is that this revenue comes on top of email’s already amazing ROI of $44.
“Many marketers who invest in advanced personalization tactics can realize an annual return on investment in excess of twenty dollars for every dollar invested,” The Relevancy Group concluded in its report, The Value of Personalization Optimization for Retailers, commissioned by Liveclicker.
We know what you’re thinking: “Where did that $20 ROI come from, and how can I get in on it?”
The Relevancy Group asked marketers about their revenue from different levels of personalization – basic to advanced – and how much they budgeted for personalization. Using those figures, analysts calculated the average ROI that came from advanced personalization alone.
Now, how can you make it happen in your own email program?
First, the good news: Marketers who use advanced personalization effectively can surpass even that additional $20 ROI.
Now, the bad news: You won’t get there just by adding the recipient’s first name to your email or to personalize the subject line. People expect to see first-name personalization. So, by itself, just adding the name won’t move your customers to act.
The next level of personalization, which includes dynamic content based on past purchases, can generate more revenue than just using first-name personalization. But it isn’t enough to earn you that additional $20 ROI, either.
Finding the right personalization tactic pays the big dividends
“To see dramatic ROIs, it’s imperative that marketers adopt the more advanced tactics,” says Liveclicker’s new report, Driving Value with Advanced Personalization, which builds on the data and analysis in The Relevancy Group’s report to show marketers specifically how it can be done.
Advanced personalization – using real-time data and a set of rules based on signals from inventory levels, message open times and clickstream behavior to create “superior individualized experiences,” TRG’s report says.
These tactics can take many different forms:
The secret to success isn’t just picking one tactic and seeing how it works. Instead, you need to see which tactics best fit your email strategy, along with your customers’ needs and expectations.
Liveclicker’s new report analyzes how one retailer used advanced personalization to increase revenue and engagement.
Chico’s needed to promote its higher-end Black Label collection but needed to find out how to present this merchandise to customers to encourage more purchases.The company tested two options: one based on a customer’s previous purchases and one that used live inventory data that presented the newest items in the collection.Results: The collection-based test beat the purchase-based test by double digits. Want to know the details? Download Driving Value with Advanced Personalization to get the specifics.
Download The Value of Personalization Optimization for Retailers to learn more
Both case studies show how investing in advanced personalization can generate an extra $20 ROI on email marketing and help you increase revenue by generating more sales and higher order values. They increase the relevance and value of your email messages and help your emails meet the growing competition for attention in the inbox.
The Relevancy Group report, The Value of Personalization Optimization for Retailers, lays out a roadmap for retailers who want to dive deeper into the state of play for personalization among today’s retailers, the actual monetary values generated by advanced personalization tactics and how they compare to basic and purchase-based personalization.
Download your copy now so you can begin seeing the possibilities!